India might finally be ready to make a real move on crypto and the global industry is watching.
After years of uncertainty, the government is preparing to release a discussion paper on crypto regulation in June. For a country that’s gone from heavy taxes to long periods of silence, this could be a defining moment. With the global market heating up and Bitcoin recently touching a new all-time high above $111,900, India’s timing is interesting.
What’s in the paper? Will it invite public opinion? Could this be the start of a more structured approach to crypto in India? Let’s unpack what we know so far.
Supreme Court Steps In: Silence is No Longer an Option
The pressure isn’t just coming from the markets. India’s Supreme Court has strongly called out the government’s delay in addressing crypto regulation. It warned that the ongoing legal vacuum is creating space for misuse and made it clear that banning crypto isn’t the solution.
A bench led by Justices Surya Kant and N Kotiswar Singh questioned why, while other global economies are moving ahead with their own regulatory frameworks, India is yet to make a clear decision.
This paper appears to be a direct response. According to reports, the government’s upcoming proposal will draw heavily from the IMF and Financial Stability Board’s recent synthesis report. There are also signs that it might open the floor for public input, giving stakeholders a chance to contribute to the process.
India’s Journey So Far: Tax First, Clarity Later
India’s crypto story has had its share of growing pains. The 2023 budget introduced a 30% tax on crypto profits, which pushed many users and exchanges to rethink their presence in the country. While firms were required to register with the Financial Intelligence Unit, the sector still lacks formal recognition.
The Reserve Bank of India has remained cautious, often highlighting risks like money laundering and terror financing. At the same time, it has continued to promote its central bank digital currency as a safer alternative to private crypto assets.
According to a recent report by think tank Esya Centre, nearly 90% of Indian crypto trading has moved offshore, largely in response to existing policies. Industry voices have warned that the current setup limits innovation and drives users toward unregulated platforms.
Global Momentum Is Building – Can India Keep Pace?
While India works through its roadmap, global powers are setting the tone.
In the US, President Donald Trump has shifted the country’s stance with a bold pro-crypto approach. His administration has pardoned several digital asset leaders, backed a strategic bitcoin reserve, and seen the Senate pass stablecoin-focused legislation.
Meanwhile, the European Union is already rolling out its MiCA regulation, setting clear rules for digital asset firms operating across its member states.
A Defining Moment for India
One senior Indian official noted that the country would approach crypto decisions with the national interest in mind, and avoid “knee-jerk” reactions. That could be key, especially in a market known for sudden shifts and global ripple effects.
The industry will be watching closely and this time, expecting action.
